Amanzimtoti, Kwazulu-natal South Africa (PressExposure) August 10, 2011 -- South African consumers are under a great deal of economic pressure, which means that new and innovative ways to improve their financial situation are important. Vehicle refinance is a way to potentially reduce the monthly repayments on a motor vehicle loan, freeing the funds for use elsewhere.
Although the concept of home loan refinance is widely understood in South Africa, vehicle refinance is less well known. Refinancing a motor vehicle is basically a matter of taking out a new vehicle loan with a new lender. The new lender pays off the outstanding balance of the loan and the consumer switches their monthly payments to the new lender.
The main reason car refinance may be an option is that a consumer may have taken out their vehicle loan at a time when interest rates were higher than they are at present. This means that over the lifetime of the vehicle, they could be paying thousands of Rands more than they need to.
2Refinance, a South African refinance company, has initiated a new drive to educate South African consumers about the advantages and potential pitfalls of vehicle refinance.
The Managing Director of 2Refinance, Mr Paul van Zyl, said "It''s important that people understand how vehicle refinance works. It''s possible for a consumer to save hundreds, even thousands of rands each month on their car loan repayments, but every case is different."
Mr van Zyl continued, "We''ve written a short information guide to vehicle refinance in South Africa, and published it on our vehicle refinance website at http://www.VehicleRefinance.co.za. It''s available free of charge to anyone who''s interested in learning how vehicle refinance can potentially save them money every month, or help them to pay off their vehicle loan sooner."
By negotiating directly with accredited lending institutions on behalf of its clients, 2Refinance is able to obtain the best interest rate offers. The company services customers anywhere in South Africa from their head office in Amanzimtoti, Kwazulu-Natal.